Billionaire investor Paul Tudor Jones has officially announced that he’s very bullish on bitcoin. And better yet, he says the primary reason he’s buying BTC is because it’s an excellent hedge against inflation.
Jones went as far as to compare bitcoin today to gold in the 1970s. Gold had an amazing run that decade. Between 1971 and early 1980, gold prices went from $35 an ounce to $640.
Here’s an excerpt from Bloomberg’s reporting on Jones’ move into bitcoin:
He was motivated to take a hard look at Bitcoin after considering the implications of massive fiscal spending and bond-buying by central banks to combat the coronavirus pandemic, he said.
By his calculation, $3.9 trillion of money, the equivalent of 6.6% of global economic output, has been printed since February.
“It has happened globally with such speed that even a market veteran like myself was left speechless,” Jones, 65, wrote. “We are witnessing the Great Monetary Inflation — an unprecedented expansion of every form of money unlike anything the developed world has ever seen.”
“The Great Monetary Inflation” — wow! Jones is widely respected in the investment community. And the fact that he’s coming around to our point of view about bitcoin being a hedge against inflation is a very positive development.
Bitcoin has rallied hard over recent days and is approaching $10,000. I remain bullish on bitcoin and cautious on altcoins.
Hopefully the bull run will continue with the bitcoin halving coming up. But even bitcoin could experience a pullback if we get another major drawdown in stocks.
I only say this because it’s possible for bitcoin to go lower in the short-term. I’m optimistic. I’m also trying to maintain a long-term perspective because the short-term outlook remains very difficult to predict.
But the long-term prospects for bitcoin have never been better. We’re going to experience some crazy monetary experiments over the next few years.